Utah's 529 Plan

529 plans are tax-advantaged savings vehicles designed to encourage individuals to begin to save for the future costs of higher education. The Utah Educational Savings Plan (UESP), a nonprofit trust fund, is the official and only 529 plan established and sponsored by the State of Utah. You do not have to be a Utah resident to participate in UESP. UESP is a direct-sold 529 plan, which means you can set up an account and make contributions by dealing directly with UESP.

Benefits of 529 Plans

Tax Benefits

Earnings on investments in UESP accounts grow federal and Utah state income tax deferred. As long as the funds are used for qualified higher education expenses of the beneficiary at an eligible educational institution, withdrawals from an account are exempt from federal and Utah state income taxes.

Qualified Higher Education Expenses

Funds in your UESP account can be used for qualified higher education expenses, including:

Tuition and fees

Books, supplies, and equipment required for enrollment or attendance

Room and board for students who are enrolled at least half-time

Qualified Educational Institutions

Funds can be used at any college, university, or technical school that participates in federal financial aid programs for students in the United States or abroad (not only institutions in Utah). Visit fafsa.ed.gov for a list of eligible schools.

Utah State Income Tax Credit

Utah residents who save with UESP may qualify for a Utah state income tax credit.

If you are not a Utah taxpayer or resident, please see if the state where you or your beneficiary live or pay taxes offers a 529 plan that provides state tax or other benefits not otherwise available to you by investing in UESP.

Benefits of UESP

Investment Options

UESP offers 14 investment options, including four age-based, eight static, and two customized investment options. Each investment option provides a different style of investment and different level of risk.

Minimum Investment

No minimum investment is required to open or maintain a UESP college savings account.

Important Legal Notice

You should read the Program Description and consider all investment objectives, risks, charges, and expenses before investing. The Program Description is available for download on the web or a hard copy can be mailed to you by requesting it online here.

FDIC Insurance. Except for the underlying investment specified below, investments in UESP are not insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance, up to applicable limits, is provided for the FDIC-insured accounts held in trust by UESP at Sallie Mae Bank and U.S. Bank National Association (U.S. Bank) (collectively Banks). Contributions to and earnings on the FDIC-insured accounts are allocated between the Banks according to the following percentages: Sallie Mae Bank (90 percent) and U.S. Bank (10 percent). Money in the FDIC-insured accounts is insured by the FDIC on a pass-through basis to each account owner at each Bank up to the maximum amount set by federal law, which is $250,000. The amount of FDIC insurance provided to an account owner is based on the total of (1) the value of an account owner’s investment in the FDIC-insured account at each Bank plus (2) the value of other accounts held (if any) at each Bank, as determined by the Banks and by FDIC regulations.

No Other Insurance and No Guarantees. Investments in UESP are neither insured nor guaranteed by the State of Utah, UESP, the Utah State Board of Regents, the Utah Higher Education Assistance Authority, other state agencies, federal government agencies (except to the extent noted above regarding FDIC insurance), or any employees or directors of any such entities. Units in UESP have not been registered with the United States Securities and Exchange Commission or with any state securities commission.

Account Value. The value of your UESP account may vary depending on market conditions and the performance of the UESP investment option you select. It could be more or less than the amount you contribute; in short, your investment could lose value. However, subject to the application of the rules and regulations of the Banks and the FDIC to each account owner, money in the FDIC-insured accounts will retain its value, whether in the FDIC-Insured investment option or when allocated to portions of another investment option that have the FDIC-insured accounts included as an underlying investment.

Non-Utah Taxpayers and Residents. You should determine whether the state in which you or your beneficiary pays taxes or lives offers a 529 plan that provides state tax or other benefits not otherwise available to you by investing in UESP. You should consider such state tax treatment and benefits, if any, before investing in UESP.